The use of trusts in the UK is growing as they play an increasingly important role in estate and succession planning, according to analysis from Utmost Wealth Solutions of the latest HMRC statistics on Trusts in the UK.
The Trust Registration Service (TRS) shows that there were around 835,000 trusts and estates registered up to 31 March 2025 and that remain open as of 29 August 2025. Around one in seven were registered in the period between 2024/25 Financial Year, when there were 121,000 new registrations
The sustained increase in trust registrations reflects the growing relevance of trusts as more families are drawn into Inheritance Tax (IHT) by the freeze to the thresholds with the nil-rate band remaining frozen at £325,000 since 2009.
This means that rising property values and asset growth have steadily increased the proportion of estates exposed to the tax with IHT receipts forecast to reach £14.5 billion in 2030-31, with an estimated one in ten estates expected to be liable by that point. Furthermore, recent policy changes – including tighter treatment of agricultural and business property reliefs as well as proposals to bring unused pension funds within the scope of IHT on death – are likely to have further increased interest in trusts among high-net-worth families and financial advisers.
Against this backdrop, trusts continue to be used as a core planning tool to gift assets, organise succession and manage long-term family wealth according to Marc Acheson, Global Wealth Specialist at Utmost Wealth Solutions.
He said: “The continued growth in trust registrations is entirely understandable. With the IHT nil-rate band frozen for more than 15 years and the tax base being widened through successive policy changes, more families are finding themselves exposed to IHT and are turning to trusts as a well-established way of organising succession and mitigating long-term liabilities.
“What is becoming increasingly apparent, however, is that while trust usage is rising, so too is the complexity that comes with acting as a trustee.”
In addition to TRS requirements, trustees are now facing expanded automatic exchange of information (AEOI) obligations. In December, mandatory AEOI rules were extended to trusts that meet the financial assets test because they are considered ‘Managed Investment Entities’ –a trust that has engaged a discretionary manager to manage the trust’s assets directly rather than through a structure like an international unit linked life assurance policy.
Marc Acheson added: “With the regulatory burden growing, fulfilling fiduciary duties has become significantly more demanding. Therefore, who to appoint as trustee – and whether they have the expertise, systems and regulatory resilience to cope with today’s requirements – has never been more critical.”
